Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/41416
Authors: 
Stühmeier, Torben
Wenzel, Tobias
Year of Publication: 
2010
Series/Report no.: 
DICE discussion paper 02
Abstract: 
This paper studies the impact of ad-avoidance behavior in media markets. We consider a situation where viewers can avoid advertisement messages. As the media market is a two-sided market, increased ad-avoidance reduces advertisers' value of placing an ad. We contrast two financing regimes, free-to-air and pay-TV. We find that a higher viewer responsiveness to advertising decreases revenues and entry in the free-to-air regime. In contrast, in the pay-TV regime, lower income from advertisements is compensated by higher subscription income leaving revenues and the number of channels unaffected for a fixed total viewership.
Subjects: 
Media Markets
Ad-avoidance
Two-Sided Markets
JEL: 
L11
L13
ISBN: 
978-3-86304-001-7
Document Type: 
Working Paper

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